diff --git a/modules/pubmaticBidAdapter.js b/modules/pubmaticBidAdapter.js
index df22f8713cd..f6e6e67444a 100644
--- a/modules/pubmaticBidAdapter.js
+++ b/modules/pubmaticBidAdapter.js
@@ -975,8 +975,19 @@ export const spec = {
           !utils.isStr(bid.params.outstreamAU) &&
           !bid.hasOwnProperty('renderer') &&
           !bid.mediaTypes[VIDEO].hasOwnProperty('renderer')) {
-          utils.logError(`${LOG_WARN_PREFIX}: for "outstream" bids either outstreamAU parameter must be provided or ad unit supplied renderer is required. Rejecting bid: `, bid);
-          return false;
+          // we are here since outstream ad-unit is provided without outstreamAU and renderer
+          // so it is not a valid video ad-unit
+          // but it may be valid banner or native ad-unit
+          // so if mediaType banner or Native is present then  we will remove media-type video and return true
+
+          if (bid.mediaTypes.hasOwnProperty(BANNER) || bid.mediaTypes.hasOwnProperty(NATIVE)) {
+            delete bid.mediaTypes[VIDEO];
+            utils.logWarn(`${LOG_WARN_PREFIX}: for "outstream" bids either outstreamAU parameter must be provided or ad unit supplied renderer is required. Rejecting mediatype Video of bid: `, bid);
+            return true;
+          } else {
+            utils.logError(`${LOG_WARN_PREFIX}: for "outstream" bids either outstreamAU parameter must be provided or ad unit supplied renderer is required. Rejecting bid: `, bid);
+            return false;
+          }
         }
       }
       return true;
diff --git a/test/spec/modules/pubmaticBidAdapter_spec.js b/test/spec/modules/pubmaticBidAdapter_spec.js
index d22acabd4cf..23c5f01e520 100644
--- a/test/spec/modules/pubmaticBidAdapter_spec.js
+++ b/test/spec/modules/pubmaticBidAdapter_spec.js
@@ -930,6 +930,89 @@ describe('PubMatic adapter', function () {
         delete bid.params.video.mimes; // Undefined
         expect(spec.isBidRequestValid(bid)).to.equal(false);
       });
+
+      it('checks on bid.params.outstreamAU & bid.renderer & bid.mediaTypes.video.renderer', function() {
+        const getThebid = function() {
+          let bid = utils.deepClone(validOutstreamBidRequest.bids[0]);
+          bid.params.outstreamAU = 'pubmatic-test';
+          bid.renderer = ' '; // we are only checking if this key is set or not
+          bid.mediaTypes.video.renderer = ' '; // we are only checking if this key is set or not
+          return bid;
+        }
+
+        // true: when all are present
+        // mdiatype: outstream
+        // bid.params.outstreamAU : Y
+        // bid.renderer : Y
+        // bid.mediaTypes.video.renderer : Y
+        let bid = getThebid();
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+
+        // true: atleast one is present; 3 cases
+        // mdiatype: outstream
+        // bid.params.outstreamAU : Y
+        // bid.renderer : N
+        // bid.mediaTypes.video.renderer : N
+        bid = getThebid();
+        delete bid.renderer;
+        delete bid.mediaTypes.video.renderer;
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+
+        // true: atleast one is present; 3 cases
+        // mdiatype: outstream
+        // bid.params.outstreamAU : N
+        // bid.renderer : Y
+        // bid.mediaTypes.video.renderer : N
+        bid = getThebid();
+        delete bid.params.outstreamAU;
+        delete bid.mediaTypes.video.renderer;
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+
+        // true: atleast one is present; 3 cases
+        // mdiatype: outstream
+        // bid.params.outstreamAU : N
+        // bid.renderer : N
+        // bid.mediaTypes.video.renderer : Y
+        bid = getThebid();
+        delete bid.params.outstreamAU;
+        delete bid.renderer;
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+
+        // false: none present; only outstream
+        // mdiatype: outstream
+        // bid.params.outstreamAU : N
+        // bid.renderer : N
+        // bid.mediaTypes.video.renderer : N
+        bid = getThebid();
+        delete bid.params.outstreamAU;
+        delete bid.renderer;
+        delete bid.mediaTypes.video.renderer;
+        expect(spec.isBidRequestValid(bid)).to.equal(false);
+
+        // true: none present; outstream + Banner
+        // mdiatype: outstream, banner
+        // bid.params.outstreamAU : N
+        // bid.renderer : N
+        // bid.mediaTypes.video.renderer : N
+        bid = getThebid();
+        delete bid.params.outstreamAU;
+        delete bid.renderer;
+        delete bid.mediaTypes.video.renderer;
+        bid.mediaTypes.banner = {sizes: [ [300, 250], [300, 600] ]};
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+
+        // true: none present; outstream + Native
+        // mdiatype: outstream, native
+        // bid.params.outstreamAU : N
+        // bid.renderer : N
+        // bid.mediaTypes.video.renderer : N
+        bid = getThebid();
+        delete bid.params.outstreamAU;
+        delete bid.renderer;
+        delete bid.mediaTypes.video.renderer;
+        bid.mediaTypes.native = {}
+        expect(spec.isBidRequestValid(bid)).to.equal(true);
+      });
     });
 
   	describe('Request formation', function () {